“With this acquisition, we further our strategy of tactical, private-label positioning alongside leading brands,” says Rob Vitale, president and chief executive officer of Post. “I am pleased to welcome back the approximately 1,580 employees of 8th Avenue, who will join us as Post colleagues.”

The acquisition internalizes Post’s manufacturing of Peter Pan peanut butter, represents the company’s entry into the dry pasta category with the Ronzoni brand and enables its greater participation in the granola subcategory of ready-to-eat cereal.

Financial Details

Post acquired 8th Avenue for approximately $880 million, which includes the assumption of $111 million in finance leases. The remainder of the purchase price will be paid in cash to retire existing debt, including 8th Avenue’s first lien term loan, first lien incremental term loan, second lien term loan and revolving credit facility, as well as to acquire the remaining preferred and common-equity interests in 8th Avenue not currently owned by Post. Post funded the purchase price with a combination of cash on hand and borrowings under its existing revolving credit facility.

Post’s management expects 8th Avenue to contribute approximately $115 million of adjusted EBITDA in the next 12 months, before the realization of cost synergies, which Post’s management expects to be at an annual run rate of approximately $15 million by the end of the 2026 fiscal year. Post’s management expects 8th Avenue to generate incremental free cash flow, complementing Post’s cash generation-focused business model and preserving Post’s capital allocation flexibility.